Abstract

We show that risk aversion raises the public reserve price rP above the seller’s cost c, but lowers the secret reserve price rS below the revenue maximizing reserve price r0. Further, rP<rS. Hence, for a risk averse seller, public and secret reserve prices are ordered: c<rP<rS<r0.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call